On July 1, 2019, SEK Company sold goods to Grant Company for R$900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of R$1,416,163. The goods have a cost on SEK’s books of R$590,000. Questions: (a) How much revenue should SEK Company record on July 1, 2019? (b) How much revenue should it report related to this transaction on December 31, 2019?

Q: On January 01, 2021, CPA Company sold equipment costing P760,000 with accumulated depreciation of…

A: Solution: Fair value of note on Jan 1, 2021 = P800,000 * PV of 1 at 5% for 4th period = P800,000 *…

Q: On January 1, 2019, Kelly Company sold equipment with a carrying amount of P7, 000,000 in exchange…

A: Present value of the Note = Face value of the note x Present value factor Gain (loss) on the sale  =…

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A:

Q: On March 1, 2020, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a 5-year,…

A: Prepare the journal entries for Parnevik on March 1, 2020:

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A: Calculation of accrued interest till December 31, 2021: Interest Receivable/Interest Revenue = Face…

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A: The usage rate is known as the effective interest rate that is actually paid by the borrower of the…

Q: On February 1, 2021, JANE Company factored receivables with a carrying amount of ₱300,000 to JACK…

A: The amount of charges or fees imposed for factoring of accounts receivables are termed as  loss on…

Q: On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to…

A: Calculate the sales price of software:

Q: On January 2, 2021, Integrity Co. sold merchandise to Honesty, Inc. for P2,500,000. The cost of…

A: The installment sales method recognizes revenue and income proportionately as cash is collected. The…

Q: A three-year note of P200,000 with contract rate of 10% received from Dilaw Corporation dated…

A: Interest income is the amount which is received for lending money and is calculated on the face…

Q: henyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021 with a…

A: Jhenyviv factored receivables with a carrying amount of P2M to Darrel Corp on Feb 1, 2021, with a…

Q: What should be the balance of the Discount on Notes Payable account on the books of ABC Company at…

A: Note payable- A promissory note or written agreement is referred to as a note payable. The…

Q: On January 1, 2020, Blue Co. borrowed and received $ 507,000 from a major customer evidenced by a…

A: Present value of bonds = Face value of bonds x present value factor (9%, 4 years) = $520000 x…

Q: FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: On June 1, 2022, EBD sold equipment to EHL in exchange for a zero-interest bearing note with a face…

A:

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…

A: Note receivable is a type of promissory note that promises to pay the debt over a period of time.

Q: On January 2, 2020, GRAPES Company sold equipment with a carrying amount of ₱480,000 in exchange for…

A: The gain or loss on sale of an asset depends on the selling price and carrying value of asset. The…

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: >Long Term assets are recorded in the books of account at their acquisition cost. >If these…

Q: On July 27, 2011, Panda, Inc. sold goods to Small Company for P1,850,000 in exchange for a 4-year…

A: The notes receivables means a document in which the borrower issues a note to the lender that he…

Q: n January 1, 2022, Fulbright Company sold goods Blue Dirt Company for $400,000 in exchange for…

A:

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P2,500,000 and…

A: Present value of the note = Annual installment x Present value factor (10% x 3 years) = P300,000 x…

Q: On January 1, 2019, Aitoes Inc. sold used equipment with a cost of S15,000 and a carrying amount of…

A: Notes receivable is used to track the money to be received from the borrower

Q: On January 2, 2021, Sinovac Co. sold merchandise to Astra, Inc. for P1,200,000. The cost of items to…

A: Present value of instalments and interest = annual instalments x no. of instalments  = P192,000 x 5…

Q: On January 1, 2019, a company acquired transportation equipment by paying cash of P400,000 and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2019, ABC Company sold an equipment with carrying amount of P1,500,000. The customer…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On December 1, 2021, Davenport Company sold merchandise to a customer for $20,000. In payment for…

A: Interest revenue recognize during 2021 = Notes receivable x rate of interest x 1/12 months =…

Q: On January 1, 2019, Allure Company sold an equipment with a carrying amount of P800,000, receiving a…

A: As per the amortization method, the financial asset is recognized at fair value and interest income…

Q: Bahag-Hari company provided you the following sales transactions as of December 31,2021: ·…

A: Note receivable is a form of current asset for the business, on which regular interest payment will…

Q: On January 1, 2020, Heavy Corporation that manufactures heavy equipment sold an equipment for…

A: In the instalments type of sale, the income is not recognized until full instalments are received…

Q: On January 1, 2021, Kongguksu Co. acquired an equipment by issuing two-year, noninterest bearing…

A: Given, Note amounting = P1,000,000 Present value of $1 (n=2,i=12%) = 0.7972

Q: n July 1, 2021, A Company sold goods to a customer for P540,000 in exchange for a 4-year, 12%…

A: solution given Face value of note 894697.80 Life 4 years Interest rate 12%…

Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January…

A: Given: Face value of the note=$244000Present value factor for 10% and 5 years =0.62 Zero -interest…

Q: On January 1,2021, Mickey Mouse Corporation sells a Furniture and Fixtures costing P1,500,000 and…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On January 1, 2020, Pedro Company sold land that originally cost P400,000 to Buyer Company. As…

A: Answer -  Part 4 - Calculation of the correct carrying amount of the notes receivable at December…

Q: On January 1,2021, Mickey Mouse Corp sells a Furniture and Fixtures costing P1,200,000 and with…

A: Present value of the note = Present value of principal + Present value of interest payments = face…

Q: Tran Company acquired an equipment from a manufacturer on June 30, 2018 and signed a $540,000, 18…

A: Compute the amount of interest.

Q: On January 1, 2021, J Company sold equipment at a cost of P700,000 and accumulated depreciation of…

A: A note or debt where there is no requirement to pay-off the interest on note is known as…

Q: On 1 July 2019, Cassblanka Ltd sells a construction vehicle to Tradon Ltd. The vehicle cost…

A:

Q: Williams Inc owes $45,000 to Smith & Sons for inventory acquired with terms of 3/15 net 30. How much…

A: Discount is a term used for the benefit allowed by a seller to the buyer for purchasing huge…

Q: quipment with a carrying amount of ₱480,000 in exchange for a ₱600,000 non-interest bearing note due…

A: Net present value is defined as the discounted cash flow technique which applies to weight the items…

Q: On February 1, 2019, Henson Company factored receivables with a carrying amount of $300,000 to Agee…

A: When a firm factors its receivable to another firm, the former firm transfers right to collect…

Q: On October 1, 2021, Smash Company discounted its own note of P500,000 at 10% for 1 year. In its…

A: When a business makes discounting of its own note, then Notes payable will become a liability for…

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A: solution concept non interest bearing note                 when an non interest bearing note is…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Current and non-current liabilities: The liabilities are classified as current and noncurrent…

Q: On October 10, 2020, Executor Co. entered into a contract with Belisle Inc. to transfer Executor's…

A: Journal entries are the transactions that are recorded in the primary book. They are chronological…

Q: Gatsby, Inc. owed $500,000 on account for inventory purchased on November 1, 2020. The company's…

A: Note payable is a financial instrument that creates a liability to a person signing it. It contains…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Introduction

Q: On January 1, 2019, DEXTER Company sold equipment with a carrying amount of P4,800,000 in exchange…

A: We know that the fair value of the note is the present value of all the cash inflows made on the…

Q: On January 1, 2021, ABC Company acquired an equipment from DEF Company in lieu of cash payment, ABC…

A: Interest expense is the amount which is paid along with the principal amount of a debt security like…

Q: On January 01, 2021, VKS Company sold equipment costing P760,000 with accumulated depreciation of…

A: Present value of the note on January 01, 2021 = Face value of the Note x PV factor (5%, 4 years) =…